BILL NUMBER: AB 1955	CHAPTERED  09/30/00

	CHAPTER   961
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 9, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   MAY 2, 2000

INTRODUCED BY   Assembly Member Migden

                        FEBRUARY 15, 2000

   An act to add Article 4.5 (commencing with Section 75085) to
Chapter 11 of Title 8 of the Government Code, relating to judges'
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1955, Migden.  Judges' retirement:  extended service incentive
program.
   The Judges' Retirement Law prescribes retirement benefits for
judges, as defined, who were first elected or appointed to judicial
office before November 9, 1994.
   This bill would establish the  Extended Service Incentive Program
to provide enhanced retirement benefits for those judges who continue
in service beyond retirement age, as specified, and direct the board
of administration of the Public Employees' Retirement System to
implement the program no later than July 1, 2001, except as
specified.  The bill would also direct the Board of Administration of
the Public Employees' Retirement System and the Judicial Council to
report to the Legislature, by January 1, 2006, regarding the costs
and effects of the program, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 4.5 (commencing with Section 75085) is added to
Chapter 11 of Title 8 of the Government Code, to read:

      Article 4.5.  Extended Service Incentive Program

   75085.  The Extended Service Incentive Program is hereby created
to provide an incentive to judges who are eligible to receive the
maximum retirement benefit to remain in public service.  The program
is intended to address the growing problem of judges retiring when
they are first eligible to do so.  The people of California are
continuing to lose vital judicial resources and experience when
long-serving judges leave public service.  The Extended Service
Incentive Program shall provide certain judges who retire with more
than 23 years of creditable service with a lump sum payment in
addition to their normal monthly retirement allowance.  It is
intended that the program shall operate at no cost to the state, due
to the anticipated delayed retirement of the participating judges.
   75085.1.  The design and administration of the Extended Service
Incentive Program shall conform to the applicable provisions of Title
26 of the United States Code and the Revenue and Taxation Code.
   75085.2.  If any provision of this article or application thereof
to any person or circumstance is held invalid, that invalidity shall
not affect other provisions or applications of this article that can
be given effect without the invalid provision or application, and to
this end the provisions of this article are severable.
   75085.3.  The board shall implement the Extended Service Incentive
Program pursuant to the provisions of this article no later than
July 1, 2001, unless the board determines, by resolution, that the
implementation tasks cannot be completed until a later date, in which
case the board shall implement the program pursuant to this article
no later than January 1, 2002.
   75085.4.  The board may adopt regulations to implement the
program.
   75085.5.  "Program" means the Extended Service Incentive Program.

   75085.6.  "Extended service calculation date" means the later of
(a) January 1, 2001, or (b) the date the judge first becomes eligible
to participate in the program pursuant to Section 75086.
   75085.7.  "Extended service period" means a period of time
commencing on the extended service calculation date and ending (a) on
the date of the judge's retirement or his or her earlier termination
of service, as provided in subdivision (b) of Section 75086.1, or
(b) 120 months after the extended service calculation date, whichever
is earlier.  Nothing in this article shall be deemed to prohibit a
judge from continuing to perform creditable service beyond the
extended service period.
   75085.8.  "Program payment" means the amount to be paid to the
judge as a result of his or her participation in the program, as
calculated in Section 75087.
   75086.  A judge shall be eligible to participate in the program if
the judge has performed at least 20 years of creditable service and
is at least 60 years of age.
   75086.1.  (a) A judge described in Section 75086 shall be entitled
to receive a program payment at the time of his or her termination
of employment and retirement if the judge continued to perform
creditable service for at least 36 months after the extended service
calculation date.
   (b) Notwithstanding subdivision (a), if a judge described in
Section 75086 ceases to perform creditable service within 36 months
after the extended service calculation date due to the judge's death
or disability, or because the judge was unsuccessful in his or her
efforts to be reelected or retained in office, the judge, or the
judge's beneficiary, shall be entitled to receive a program payment.
No program payment shall be distributed pursuant to this subdivision
prior to the implementation of the program as provided in Section
75085.3.
   75086.2.  The judge's retirement contribution shall continue
during the extended service period.
   75087.  The program payment shall be calculated by the system as
an aggregate amount equal to a percentage of the judge's monthly
salary for each month of the extended service period, taking into
account any salary increases occurring during the period, plus
monthly interest thereon at a rate indexed to 30 year United States
Treasury Bonds.  For the first to the 60th month, inclusive, of the
extended service period, the calculation amount shall be 20 percent
of the judge's monthly salary.  For the 61st to the 120th month,
inclusive, of the extended service period, the calculation amount
shall be 8 percent of the judge's monthly salary.
   75088.  Upon the termination of employment and retirement of a
judge who is entitled to a program payment, as described in
subdivision (a) of Section 75086.1, the judge shall receive the
program payment, calculated pursuant to Section 75087, in the form of
a single, lump-sum payment, in addition to any other retirement
benefit to which the judge is entitled pursuant to this chapter.
   75088.3.  The required beginning date of distributions that
reflect the entire interest of the judge shall be as follows:
   (a) In the case of a lump-sum distribution to the judge, the
lump-sum payment shall be made not later than April 1 of the calendar
year following the later of the calendar year in which the judge
attains the age of 70 and one-half years or the calendar year in
which the judge terminates employment.
   (b) In the case of a program payment payable on account of the
judge's death, the distribution shall be made no later than December
31 of the calendar year in which the fifth anniversary of the judge's
date of death occurs unless the beneficiary is the judge's spouse in
which case distributions shall commence on or before the later of
either:
   (1) December 31 of the calendar year immediately following the
calendar year in which the judge dies.
   (2) December 31 of the calendar year in which the judge would have
attained the age of 70 and one-half years.
   75088.4.  A judge described in Section 75086 may, at any time,
designate a beneficiary to receive the benefits that may be payable
to his or her beneficiary or estate under this article by a writing
filed with the board, except that no designation may be made in
derogation of the community property share of any nonmember spouse
when any benefit is derived, in whole or in part, from community
property contributions or service credited during the period of
marriage, unless the nonmember spouse has previously obtained an
alternative order for division pursuant to Section 2610 of the Family
Code.  If a judge has not filed a beneficiary designation with the
board, all benefits payable pursuant to this article shall be paid to
the survivors of the judge in the order set forth in Section 21493.

   75089.  Notwithstanding any other provision of law, a judge shall
have no vested rights under this article unless and until the judge
satisfies the eligibility requirements specified in Section 75086.
Nothing in this article shall be construed to limit the right of the
Legislature to subsequently modify or repeal any provision of this
article as it relates, or may relate, to all other judges subject to
this chapter.
   75089.1.  The Judicial Council shall, on or before January 1,
2006, prepare a report to the Legislature that analyzes the effects
of the Extended Service Incentive Program, including the effect, if
any, of the program on the length of service of judges.  The report
shall include recommendations on ways to encourage long service by
judges in the Judges' Retirement System II, including whether and how
to establish an Extended Service Incentive Program for members of
the Judges' Retirement System II.  The recommendations should also
ensure that the Judges' Retirement System and the Judges' Retirement
System II provide appropriate incentives to attract and retain judges
of the highest quality from all areas of legal practice.
   In addition, the board shall, on or before January 1, 2006,
conduct an actuarial valuation to determine the costs of the program
and report the results thereof to the Legislature.
